Wall Street Mixed on Tech Earnings and China Talks/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets showed mixed performance Thursday as investors digested uneven Big Tech earnings and modest progress in U.S.-China trade relations. While Alphabet posted strong gains, Meta and Microsoft dragged the Nasdaq down. Broader market sentiment remains cautious amid inflation concerns and interest rate uncertainty.
U.S. Market Volatility Quick Looks
- S&P 500 fell 0.2%, drifting from recent highs.
- Dow Jones rose 199 points, or 0.5%.
- Nasdaq dropped 0.6% after disappointing Big Tech results.
- Alphabet shares rose 5.3% on strong quarterly earnings.
- Meta fell 11.3% over heavy 2026 spending plans.
- Microsoft slipped 2.5% despite beating earnings expectations.
- Chipotle plunged 18% after cutting sales growth forecasts.
- Eli Lilly rose 1.7% on strong drug sales performance.
- Visa and Sherwin-Williams lifted the Dow with better-than-expected profits.
- Fed comments cooled market hopes for December rate cut.
Deep Look
Wall Street Wavers as Big Tech Earnings and U.S.-China Trade Talks Send Mixed Signals
NEW YORK — U.S. stock markets turned in a mixed performance Thursday, as investors weighed uneven quarterly results from Big Tech and cautious optimism from U.S.-China trade negotiations. Though the Dow Jones Industrial Average advanced, the S&P 500 and Nasdaq slipped from record levels reached earlier in the week.
The S&P 500 edged down 0.2%, moving further from its all-time high set on Tuesday, while the Nasdaq dropped 0.6%, dragged lower by sharp losses in some of the biggest names in tech. Meanwhile, the Dow climbed 199 points, or 0.5%, as traditional stocks fared better amid volatility in tech.
Markets overseas also reflected the uncertainty, with European stocks finishing lower and Asian markets showing minimal movement.
Trade Talks Provide Limited Relief
President Donald Trump’s meeting with Chinese President Xi Jinping, which ended with a promise to reduce tariffs, offered a measure of stability to global investors. Trump described the talks as a “12 out of 10,” but analysts were more cautious. The market had already priced in high expectations, hoping for a breakthrough in ongoing tensions between the world’s two largest economies.
“The result was fine, but fine isn’t good enough given the expectations going in,” said Brian Jacobsen, chief economist at Annex Wealth Management. “The results were more like small gestures instead of a grand bargain.”
Big Tech Earnings Hit and Miss
Investor enthusiasm for tech was tempered by fresh earnings reports from some of Wall Street’s most valuable companies. Meta Platforms led the tech selloff, plunging 11.3% after announcing aggressive spending plans for 2026. Despite strong year-to-date gains, investors appeared uneasy with the long-term costs of its artificial intelligence expansion.
Microsoft also disappointed, sliding 2.5%. While the company surpassed Wall Street expectations for revenue and profit, investor concerns focused on higher investment plans for 2026 and slower-than-expected growth in its Azure cloud segment.
By contrast, Alphabet provided a bright spot, rising 5.3% after exceeding earnings and revenue projections. Strong performance across Google’s advertising and cloud divisions helped the company buck the day’s broader tech weakness.
Given their enormous market influence, the performance of Alphabet, Meta, and Microsoft heavily shapes the broader S&P 500. Combined, they make up roughly 14.5% of the index’s total weight — meaning even minor movements in these stocks can eclipse hundreds of others.
Other Corporate Movers
Outside of tech, several companies made notable moves:
- Chipotle Mexican Grill tumbled 18% after cutting its forecast for a key sales growth metric. CEO Scott Boatwright blamed “persistent macroeconomic pressures” for the downgrade.
- Eli Lilly gained 1.7% on strong sales of its diabetes and obesity drugs, Mounjaro and Zepbound. The pharmaceutical giant also raised its full-year revenue and earnings forecasts.
- Sherwin-Williams helped buoy the Dow with a 2% gain after posting stronger-than-expected earnings, even amid what CEO Heidi Petz called a “soft demand environment.”
- Visa added 1.5% after exceeding quarterly profit estimates, further strengthening the Dow’s performance.
Rate Cut Expectations Dented by Fed Comments
In the bond market, yields ticked higher following Federal Reserve Chair Jerome Powell’s warning that a December interest rate cut is “far from” guaranteed. The yield on the 10-year Treasury rose slightly to 4.09%, up from 4.08% the previous day and 3.99% before Powell’s comments.
The Federal Reserve has already enacted two rate cuts this year to help a slowing labor market, but persistent inflation has limited their ability to ease policy further. Powell’s statement served as a reality check for investors hoping for additional rate relief in the near term.
Global Markets Reflect Uncertainty
European stocks closed lower as the European Central Bank held rates steady, contributing to a broader sense of cautious stagnation. France’s CAC 40 dropped 0.9%, while Germany’s DAX slipped 0.2%.
In Asia, Japan’s Nikkei 225 managed a marginal gain of less than 0.1% after the Bank of Japan also held interest rates steady, choosing not to follow other central banks in tightening or easing monetary policy further.
Outlook: High Hopes Meet Real-World Risks
The confluence of high expectations and uneven results is defining this earnings season. With geopolitical developments and central bank policy still very much in flux, Wall Street remains cautious about the direction of markets heading into the final stretch of 2025.
While certain stocks like Alphabet continue to shine, the broader market is showing signs of fatigue following strong rallies earlier in the week. Whether investor sentiment rebounds will largely depend on inflation trends, interest rate policy, and further clarity on U.S.-China economic relations.
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